Problem Set 4
Due date: April 18, 2008 at the beginning of class
Econ 320 001, Spring 2008
There are 30 questions (25 multiple choice and 5 short answer) in this problem set. Submit your answers by
the beginning of the class on Friday April 18, 2008.
For

Problem Set 2
Due date: March 7, 2008 at the beginning of class
Econ 320 001, Spring 2008
There are 30 questions (25 multiple choice and 5 short answer) in this problem set. Submit your answers by
the beginning of the class on Fri. March 7, 2008.
For the

Problem Set 3
Due date: March 26, 2008 at the beginning of class
Econ 320 001, Spring 2008
There are 30 questions (25 multiple choice and 5 short answer) in this problem set. Submit your answers by
the beginning of the class on Wednesday March 26, 2008.
F

R eading Notes
GDP: tells us a nations total income and total expenditure on output of goods and services
Consumer Price Index (CPI): Measures level of prices
Unemployment Rate: tells fraction of workers who are unemployed
GDP is a flow statistic, it is p

I ntermediate Formulas
Investment
I = I(r)
r denotes real interest rate
i=r+
i is the nominal interest rate
r is the real interest rate
is the rate of inflation
if interest rates go up, investments go down
What shifts investment?
Government spending, G
A

feshort run curve: less choices in order to save the production; long run: more choices i.e. build
more factories and hire more workers causing the ATC to return. back to a smaller amount
Economies of scale: when long run average total cost declines as th

A dvanced Formulas
CPI: measures the retail price of a fixed market basket
CPIt = (cost of basket in year t/cost of basket in base year) x 100
PPI: a measure of whole sale prices of approximately 3,000 items (wholesale is the
intermediate goods sold to fi

Class 11 Plan vs. Market (How to create a market?)
Past opinion of centrally planned economy
o In the past, few doubted the importance and usefulness of national
economic plans
o In the 40s, central planning and public ownership seemed the future of the
w

Econ 320 - 001
Final Exam, May 2, 2008
The exam has a total of 45 questions (400 points). You will have three hours to complete the exam. Good
Luck!
Print your Name_
Sign the honor Pledge affirming that you have neither given nor received aid on this exam

Econ 320 - 001
Midterm Exam #1, February 15, 2008
The exam has a total of 17 questions (150 points). You will have 50 minutes to complete the exam. Good
Luck!
Print your Name_
Sign the honor Pledge affirming that you have neither given nor received aid on

Econ 320 - 001
Midterm Exam #2, March 28, 2008
The exam has a total of 17 questions (150 points). You will have 50 minutes to complete the exam. Good
Luck!
Print your Name_
Sign the honor Pledge affirming that you have neither given nor received aid on th

Problem Set 1
Due date: February 11, 2008 at the beginning of class
Econ 320 001, Spring 2008
There are 30 questions (25 multiple choice and 5 short answer) in this problem set. Submit your answers by
the beginning of the class on Mon. Feb. 11, 2008.
For